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Managing Change: Transformation for Productive Public Services 6/12/2016

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John Knight presentation

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Managing Change: Transformation for Productive Public Services 6/12/2016

  1. 1. www.iese.org.uk Local Authority Transformation Models – Whole Council Approaches to Transformation John Knight – Principal Consultant, iESE 6 December 2016
  2. 2. About iESE The first local government social enterprise delivered more than £1billion in savings better services, lower costs transformation, innovation, change, efficiency Local government owned by the sector, for the sector
  3. 3. Who’s spending Britain’s Billions? … rolled out a template called an “operating model assessment” across numerous councils, pocketing more than £5m. … risk and reward. … land and expand.
  4. 4. iESE are on a mission Working to help the public sector sustainably transform itself
  5. 5. Change through ‘new’ technology In total the project requires a capital budget of £3,372,000 and a revenue budget of £1,264,500 in year 1 and £2,235,500 in year 2, with an ongoing revenue expenditure increase of £200,000 per year to support the new operating model. … will contribute £1.75M per annum to the Council’s Efficiency Target. This is an “Invest to Save” project with payback period for the investment of six years. By the time the project goes live, with lost opportunity costs, it will have cost around £10M.
  6. 6. Payback - the graph of gullibility
  7. 7. It doesn’t have to be this way • Start – by stopping • Start at the beginning – not the middle or the end • Start with your purpose – what is the point of you? • Start with your customers – do what they value, not what you think they need? • Start with the question - not the answer • Start with your people – let them stand back and think
  8. 8. The iESE 5D framework
  9. 9. Payback - the graph of gullibility
  10. 10. Using the 5D Framework
  11. 11. What delivers transformational change? • Technology? • Systems? • Structure? • These enable change. People deliver change. Get the people right and the rest will follow.
  12. 12. Starting with the people - a new culture through behaviour change
  13. 13. How to get the change
  14. 14. How people change happens – the three magic ingredients • People have the skill, capability and competence to be able to change • People have the right motivations and will to do things differently • People are given the right environment and opportunities to fulfil the change
  15. 15. 5D in practice
  16. 16. Whole organisation transformation • Ryedale District Council • Small, very rural district • Successful and passionate • Operating budget of only c.£6M • Already saved c.£4M over last few years • Needed to save a minimum of c.£1.4M further • Maintain sustainability and thrive • Towards 2020 programme
  17. 17. Whole organisation transformation Describe Define Design Deliver Develop Dec to March Mandate for Change April to June July to Sept Oct to Dec Blueprint Operating Model Ongoing Transition Plan Go Live
  18. 18. The outcome • Engagement and skills transfer • Customer insight • No assumptions • Focus on ‘doing what matters’ • Fit for the future, assessment and development • Resources and assets align for future need • Release of £1M immediately • Further £1M identified • Payback within 3 months of go live
  19. 19. Thank you For more information or for a conversation: john.knight@iese.org.uk www.iese.org.uk

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